Nearly four years ago — in the very first edition of Resolution Strategies, titled “THE ART OF NEGOTIATING: PAINT WITH NUMBERS” — I noted that “every demand or offer you make will be analyzed . . . to deduce your negotiating strategy. Be mindful, therefore, to choose numbers that paint the picture you want the other side to see.”

In order to choose numbers that paint the picture you want the other side to see, it’s important to plot out your negotiating strategy in advance. When you do, don’t underestimate the value of using basic arithmetic — especially simple division — to help you design an effective strategy, as demonstrated by the following examples taken from recent mediations.

In one recent mediation, counsel for plaintiff began negotiations with a demand that was well above his intended target. Knowing where he hoped to end, he made the tactical decision to divide the difference into six consecutively smaller moves, thereby telegraphing where he planned to stop several moves before he reached that point. For purposes of illustration, assume a proposed opening demand of $510k and a target of $300k — a difference of $210k. Dividing the $210k difference into six consecutively smaller moves of $60k, $50k, $40k, $30k, $20k and $10k would result in demands of $510k, $450k, $400k, $360k, $330k, $310k and finally $300k.

In another mediation a few months back, counsel for defendant was determined to send a clear and unambiguous message from the very outset that his client was only willing to go so far to settle the dispute. To communicate this message, he chose to divide every move that plaintiff made by four and increased defendant’s offer by the resulting quotient, effectively telling plaintiff with every single move exactly where defendant intended to end the negotiations.

Finally, employing a similar strategy in yet another recent mediation, counsel for plaintiff stopped every few rounds to add together his most recent demand and defendant’s most recent offer. Before deciding on his next move, he would divide the total in half to calculate the mid-point. Once he reached a mid-point that was acceptable, he began to match every move by defendant dollar for dollar, signaling exactly where his client was prepared to settle the dispute.

Using simple math to identify numbers that would help them paint the picture they wanted the other side to see, the attorneys in each of the above mediations devised a strategy that ultimately proved to be successful. In other words, those who divide may indeed be more likely to conquer.

As always, it would be my pleasure to assist you and your clients in the dispute resolution process. Please don’t hesitate to contact me if I can be of service.

Best regards . . .

Floyd J. Siegal
fjs@fjsmediation.com